Tata Electronics, ASML join hands for semiconductor manufacturing in India

New Delhi: Electronics manufacturing company Tata Electronics and Dutch semiconductor equipment major ASML have joined hands to enable chip manufacturing in India, a joint statement said on Saturday.

The pact was announced during Prime Minister Narendra Modi's visit to the Netherlands.

ASML is known for having monopoly in a category of lithography equipment which is critical for production of advance small size semiconductors.

"Through this partnership, ASML will enable the establishment and successful ramp of Tata Electronics' upcoming 300 mm (12 inch) semiconductor Fab in Dholera, Gujarat. This collaboration is an important step in the context of the intensifying strategic collaboration between India and the Netherlands in the field of critical technologies, such as semiconductor technology," the statement said.

Tata Electronics is setting up India's first semiconductor wafer fabrication plant, entailing an investment of Rs 91,000 crore.

The collaboration between Tata Electronics and ASML will focus on deploying ASML's holistic suite of advanced lithography tools and solutions for the Dholera Fab. The use of ASML's industry-leading technologies is expected to ensure seamless operations at Indiaâs first commercial 300 mm semiconductor Fab," the statement said.

The partnership will look at accelerating training of local talent, lithography-intensive skill development, as well as proactive supply chain resilience.

Given the importance of lithography in chip manufacturing, the companies will develop the research and development infrastructure critical for the long-term success of the first Fab in India.

"ASML's deep expertise in holistic lithography solutions will ensure the timely ramp of our Fab in Dholera, create a resilient and trusted supply chain for our global customers, drive innovation, and develop talent locally," Tata Electronics, CEO and MD, Randhir Thakur, said.

ASML, President and CEO, Christophe Fouquet, said that Indiaâs rapidly expanding semiconductor sector represents many compelling opportunities, and we are committed to establishing long-term partnerships in the region.

"Signing this Memorandum of Understanding today marks an important milestone, and we look forward to close collaboration with Tata Electronics and its broader ecosystem. We believe Tata Electronics is strongly positioned to realize its ambitions in expanding semiconductor capabilities," Fouquet said.

The Dolera unit of Tata Electronics aims to manufacture semiconductors for a variety of applications across automotive, mobile devices, artificial intelligence (AI), and other key segments, to serve customers globally.

Tata Electronics has strategically partnered with key global customers and ecosystem companies, starting with PSMC (Powerchip Semiconductor Manufacturing Corporation, Taiwan), which held it in gaining access to a broad technology portfolio including 28nm (nanometer), 40nm, 55nm, 90nm, and 110nm.